ZTE reported a return to net profit in the third quarter, ending the losses of the first half of the year from the US ban on business with the company. The Chinese company reported a net profit of CNY 564 million, on revenues of CNY 19.3 billion for the three months to September. ZTE said it also increased R&D investment to 17.9 percent of revenue, from 11.2 percent a year ago, equal to a total CNY 3.47 billion in spending.
After a loss of CNY 7.8 billion in the first half and the Q3 profit, ZTE said it expects to report a full-year net loss of CNY 6.2-7.2 billion for 2018. That compares to a profit of CNY 4.6 billion last year.
ZTE said its business was "rapidly recovering" after the end to the US export ban, with the negotiation and signing of new orders and the further implementation of existing orders. The company said it also resumed normal operations in R&D, production and logistics, and its production and purchasing capabilities are back on track. R&D progress has kept pace with the targets set at the beginning of the year, and ZTE has fully restored its customer services.
In an effort to keep pace with 5G development, the company disclosed its first 3GPP 5G standard-essential patents, exceeding 1,000 families to the ETSI. This is ZTE’s first 5G SEP disclosure after the completion of the first-phase standard of 5G (Release 15). The company said it's planning a full suite of 5G devices, including smartphones, tablets and 5G indoor and outdoor routers.
